On Friday, October 6, 2023, Chicago’s City Council passed the “One Fair Wage” Ordinance (“Ordinance”), which gradually phases out Chicago’s “tip credit” over a five-year period until it is completely eliminated by June 30, 2028. At which point, all tipped employees working in the City of Chicago will earn the same hourly minimum wage rate as non-tipped employees. Meaning, on and after July 1, 2028, Chicago employers will no longer be able to credit an employee’s earned tips and gratuities towards their hourly wage rate and will be required to pay all employees, including tipped employees, Chicago’s minimum wage rate.
